26-11-2007
BBA data shows new trends in mortgage market
News by Adfero for Simply Business - independent providers of business insurance, business finance, landlord insurance, buy-to-let mortgages & commercial mortgages.
Mortgage approvals fell in October 2007, new data has revealed.
Figures released by the British Bankers' Association (BBA) have revealed that, particularly in respect of house purchases, mortgage approvals were notably lower in October, when compared with previous months.
"These figures highlight the emerging pressures on the housing market," said Simon Rubinsohn, chief economist for the Royal Institution of Chartered Surveyors.
"Activity is clearly beginning to slow as reflected both in the drop in new buyer enquiries and the decline in mortgage approvals," he added.
Although the BBA detected positive momentum overall in the UK's mortgage lending figures, this data indicates that rates of growth have slowed.
During October, mortgage lending grew by £5 billion, representing growth in annual terms of 13.4 per cent.
In related news, as a result of pressures caused by the cost of oil, the Bank of England has confirmed it is finding it more difficult to legitimise a reduction in interest rates from their current level of 5.75 per cent.